Credit loans for tenants are often more difficult to obtain than a secured loan which would be available for a home owner.
However, this should not deter anyone for applying for a credit tenant loan, as there is still a wide range of providers offering credit loans for tenants. Due to the fact that the borrower does not own their own home, there is no opportunity to apply for credit loans for tenants on a secured basis and therefore all credit tenant loans will be offered on an unsecured basis.
Due to this fact, there are usually limits on the amount which may be borrowed on a credit loan for tenants. As they are regulated by the consumer credit act, the maximum amount available on a credit tenant loan is £25,000, although many lenders will only offer a lower maximum loan. Likewise the maximum term is usually restricted to 7 years and again many lenders will cap the term at 5 years, which can have the effect of making the monthly repayments relatively expensive.
